Minimizing Costs

In our effort to boost the capabilities of cane growers and cane growing communities, Mitr Phol Group has established cane loading stations in each community in order to expand income generation opportunities for small-scale cane growers and their families to work in the farms, helping to minimize labor costs. Cane growers are able to also use their own vehicles to transport the sugarcane to the loading stations, saving on transportation costs. Transporting sugarcane from the farm to the sub-station is also more convenient as smaller vehicles are used instead of semi-trucks, and safer as it reduces road accidents. In 2008, a total of 50 sub-stations were set up. The number has since grown to 167 sub-stations. 

Cost comparisons show that farmers are able to save on average 220 baht per ton of sugarcane from being able to transport their crops to a sub-station instead of to the factory.

Since 2010, labor shortage in the agricultural sector and rising harvest costs have grown significantly. This is due to Thailand becoming an aging society and minimum wage increases which draw the working population to higher paying jobs in the industrial and service sectors. In anticipation of these issues affecting the Thai sugarcane and sugar industry, Mitr Phol Group introduced chopper sugarcane harvesters to replace manual labor and reduce operational costs in our own plantations and our contract farms. The first harvesters were introduced more than 20 years ago, in 1995.